Will Filing an Insurance Claim Raise Your Rates?
When It Makes Sense to File a Claim — and When It May Cost You More
One of the most common questions homeowners ask is:
*"Will filing an insurance claim increase my premium?"*
The honest answer is: sometimes — especially if the claim is small.
Insurance is designed to protect you from major financial loss, not every minor repair. Filing multiple small claims can sometimes lead to higher premiums or make it harder to switch insurance companies later.
Understanding when to file a claim and when to handle repairs yourself can help you keep your insurance affordable over the long term.
Do Small Insurance Claims Increase Your Premium?
In many cases, yes.
Insurance companies evaluate risk using claim history. If multiple claims appear on a property or policy within a few years, insurers may consider that property a higher risk to insure.
According to Bankrate, a single homeowners claim can raise your premium anywhere from 9% to 20%, depending on the type of claim and your insurer. Some sources report increases of 20% to 40% for certain claim types like fire or liability.
This can lead to:
Even relatively small claims can contribute to this history.
For that reason, many insurance professionals recommend saving claims for significant losses rather than minor repairs.
How Claims-Free Discounts Work
Many insurers reward homeowners who avoid filing claims. According to Insurance.com, claims-free discounts can range from 5% to over 20% depending on the carrier and how many years you've gone without a claim. Some insurers begin the discount after three claims-free years, while others require five or more.
Filing even one small claim can reset that clock and cost you years of accumulated savings on your premium.
The First Thing to Consider: Your Deductible
Before filing a claim, always compare the repair cost to your deductible.
For example:
In this scenario, filing a claim may not be worth the potential impact on future premiums.
Many homeowners choose to handle smaller repairs themselves if the claim amount would be close to the deductible.
When You Should Definitely File an Insurance Claim
Insurance is most valuable when it protects you from large, unexpected losses.
You should strongly consider filing a claim when you experience:
These events can create significant financial risk, which is exactly what insurance is designed to cover.
When It May Be Better to Pay for Repairs Yourself
In some cases, paying out of pocket may make more financial sense.
This may include situations where:
Keeping your claims history clean can sometimes help maintain lower premiums over time.
Your Claims History Follows You: Understanding CLUE Reports
When you file a claim, it gets recorded in a database called the Comprehensive Loss Underwriting Exchange (CLUE), maintained by LexisNexis. Insurance companies use CLUE reports when you apply for new coverage or at renewal to evaluate your risk.
Key facts about CLUE reports:
This is one more reason to think carefully before filing a small claim. Once it's in the CLUE database, it can affect your rates and insurability for years.
Talk to Your Insurance Agent Before Filing a Claim
One of the smartest things you can do is call your insurance agent before filing a claim.
A good agent can help you:
This is especially important because some insurers may record even a phone inquiry as a claim if you're not careful about how the conversation is handled. The Washington Office of the Insurance Commissioner recommends telling the insurance representative that you do not want to file a claim and just want to know if a potential loss is covered by your policy. Working with an independent agent — rather than calling the carrier's claims hotline directly — helps ensure your question stays an inquiry and doesn't accidentally become a filed claim.
Once a claim is formally submitted, it may appear in industry claim databases used by insurers.
Getting advice first can help you make the best decision.
The Bottom Line
Insurance is one of the most important financial protections you have. Using it wisely helps ensure it remains affordable and available when you truly need it.
If you're ever unsure whether to file a claim, contact your insurance advisor first. At Maxwell Insurance Group, we help homeowners across Idaho, Oregon, Washington, and Arizona make informed decisions about their coverage every day.